Mall‑era brands are having a real comeback moment as American Eagle, Abercrombie & Fitch, Gap, and Urban Outfitters tap into Gen Z nostalgia and better‑than‑expected results to become unlikely stock‑market winners in late 2025. Instead of being dismissed as “your older cousin’s mall stores,” these labels are suddenly being talked about as momentum plays again, helped by cleaner assortments, tighter cost control, and a consumer who is still willing to spend on the right trends.
Earnings Surprises Boost Mall-Era Brands
Earnings have been the spark. American Eagle’s shares climbed as much as 15% in extended trading after the retailer beat third‑quarter expectations and raised its full‑year outlook, pointing to stronger holiday demand and higher projected operating income. Abercrombie & Fitch delivered another surprise, with its stock soaring roughly 37% on the back of a quarterly earnings beat and continued growth at Hollister, convincing investors its turnaround still has room to run. Coverage of the wider group notes that Gap and Urban Outfitters also topped recent estimates and saw meaningful post‑earnings pops, reinforcing the idea that this is a cohort‑wide story rather than a one‑off outlier.
2000s Style and Mall-Core Make Classic Logos Feel New Again
Fashion’s cycle has swung back to Y2K and early‑2000s aesthetics, which these brands helped define the first time around. Baggy denim, logo fleece, and “mall‑core” styling suddenly feel new again to shoppers who were kids—or not yet born—when these brands first peaked, pulling Abercrombie & Fitch and American Eagle from “uncool” to aspirational in the space of a few seasons.
Shoppers’ Holiday Spending “Say-Do” Gap
The United States consumer has been more resilient than many predicted. While one PwC survey earlier in the year suggested shoppers planned to trim holiday budgets, follow‑up analysis shows actual Q4 spend tracking about 3.2% higher year over year, based on combined data for October, November, and December, with Gen Z among the groups signaling they may ultimately spend more than they’d indicated over the summer.
That “say‑do gap” is crucial for mall‑era players that have quietly reset their models. American Eagle is leaning into high‑profile campaigns and a tighter jeans and athleisure offer, while Abercrombie & Fitch has repositioned around cleaner branding, more polished basics, and a stronger social media presence—moves that help these brands feel both nostalgic and current at the same time. With consumers still willing to trade up for products that hit both fit and vibe, and with investors rewarding beat‑and‑raise quarters, the mall isn’t dead so much as remixed for a new generation.
